30 slides from Data Communications Management's earnings presentation, Aug 10, 2022
Slide 1: Q2 2022 Report to Shareholders
Q2 2022 Report to Shareholders DATA Communications Management Corp. DCM-TSX | DCMDF-OTCQX August 10, 2022
Slide 2: Forward-looking Statements and Information Disclosure
Forward-looking Statements Information Disclosure Forward-looking Statements Non-IFRS Measures Certain statements in this presentation constitute “forward-looking” statements that involve known This presentation includes certain non-IFRS measures as supplementary information. In and unknown risks, u
Slide 3: Better and Bigger Business
Better and Bigger Business
Slide 4: Momentum
"lh ~ Momentum bs ——————
Slide 5: Bigger Business
Bigger Business DCM °
Slide 6: Revenue $68.1M
Revenue +23.4% $68.1M vs. Q2 2021 vs. $55.2M Q2 2021 +$12.9M vs. prior year 6
Slide 7: Gross Profit $20.4M
Gross Profit +30.0% $20.4M 30.0% vs. Q2 2021 vs. $15.8M Q2 2021 of Revenue +$4.6M vs. prior year 7
Slide 8: New Business Wins Year to Date +$22M
New Business Wins Year to Date +$22M Financial services Healthcare Regulated industries Retail ~100% of new business “tech-enabled” Manufacturing Hospitality Lottery services 8
Slide 9: Tech-enabled Subscription Services $2.4M
Tech-enabled Subscription Services $2.4M +112% in Q2 2022 vs. Q2 2021 Accelerating monetization of our digital services 9
Slide 10: Better Business
Better Business DCM *
Slide 11: SG&A $13.8M
SG&A -3.8% $13.8M 20.2% vs. Q2 2021 vs. $14.3M Q2 2021 of Revenue +23.4% higher revenues with decreased overhead
Slide 12: Employee Productivity
Employee Productivity Headcount at End of Period Revenue per Employee* (thousands) $277.6 $255.2 $231.7 $240.6 1,411 1,433 $225.2 $205.2 1,221 1,078 922 919 2017 2018 2019 2020 2021 Q2 '22 2017 2018 2019 2020 2021 TTM Productivity per employee +35% over the last 5 years * Revenue per Employee is a n
Slide 13: Restructuring Expenses $0.9M
Restructuring Expenses $0 $0.9M in Q2 2022 in Q2 2021 Right-sizing is complete and $0 restructuring forecast in 2022 13
Slide 14: EBITDA $9.5M
EBITDA +48.7% $9.5M vs. Q2 2021 vs. $6.4M Q2 2021 Second quarter in a row with no restructuring / one-time add-backs 14
Slide 15: Net Income $3.8M
Net Income +490% $3.8M vs. Q2 2021 vs. $0.6M Q2 2021 Year to date Net Income of $7.5M 15
Slide 16: ESG Highlights
ESG Highlights Energy-efficient lighting installation underway 16 Committee members for DCM’s 5 largest facilities across Canada 332,796 ESG from across DCM, with support from many others trees reforested globally via Estimated greenhouse gas PrintReleaf partnership emissions reduction 2 years = 1,5
Slide 17: James Lorimer, Chief Financial Officer
James Lorimer Chief Financial Officer 17
Slide 18: Year to Date 2022 Financial Results
Year to Date 2022 Financial Results First half of year ended June 30, in millions Selected financial information 1H 2022 1H 2021 +/- Revenues $137.4 $117.6 +$19.8 Gross profit $40.8 $34.6 +$6.1 Gross profit % of revenues 29.7% 29.5% +20 bps SG&A* $27.4 $29.2 -$1.7 Restructuring expenses $0.0 $4.3 -$
Slide 19: Continued Revenue Momentum in Q2 2022
Continued Revenue Momentum in Q2 2022 First half revenue +17.0% vs. 2021 Quarterly Revenue (millions) $69.3 $68.1 $62.4 $60.9 $55.2 $56.9 2021 2022 Q1 Q2 Q3 Q4 $255.1M of TTM Revenue through Q2 2022 (vs. $235.3M in fiscal 2021) * TTM = Trailing twelve months through June 30, 2022 19
Slide 20: Continued Gross Profit Momentum in Q2 2022
Continued Gross Profit Momentum in Q2 2022 First half gross profit +17.7% vs. 2021 Quarterly Gross Profit (millions) $20.3 $20.4 $18.8 $17.2 $17.7 $15.8 2021 2022 Q1 Q2 Q3 Q4 $75.6M of TTM gross profit through Q2 2022 (vs. $69.5M in fiscal 2021) * TTM = Trailing twelve months through June 30, 2022 2
Slide 21: "Clean" EBITDA Momentum in Q2 2022
“Clean” EBITDA Momentum in Q2 2022 First half EBITDA +38.1% vs. 2021 Quarterly EBITDA (millions) $9.4 $9.5 $7.3 $6.4 $6.4 $5.0 2021 2022 Q1 Q2 Q3 Q4 $30.3M of TTM EBITDA through Q2 2022 (vs. $25.0M in fiscal 2021) * TTM = Trailing twelve months through June 30, 2022 21
Slide 22: Adjusted EBITDA Momentum through Q2 2022
Adjusted EBITDA Momentum through Q2 2022 First half Adj. EBITDA +14.2% vs. 2021 Quarterly Adj. EBITDA (millions) $9.3 $9.4 $9.5 $9.4 $7.3 $7.3 2021 2022 Q1 Q2 Q3 Q4 $35.6M of Adjusted EBITDA on a TTM basis (vs. $33.3M in fiscal 2021) * TTM = Trailing twelve months through June 30, 2022 22
Slide 23: Continuing to Pay Down Fixed Term Debt
Continuing to Pay Down Fixed Term Debt $5.9M of Term Debt repaid in first half of 2022 Term Debt Revolving Credit Facility (millions) (millions) $34.1 $28.1 $10.8 $3.0 31-Dec-21 30-Jun-22 31-Dec-21 30-Jun-22 -17.4% YTD reduction in fixed term, higher cost debt 23
Slide 24: Strong Momentum in 2022
Strong Momentum in 2022 Revenue Gross Profit Net Income EBITDA Q2 2022 +23.4% +29.0% +490% +48.7% vs. 2021 YTD 2022 +16.8% +17.4% +212% +38.1% vs. 2021 TTM 2022 run-rate +8.4% +8.7% +324% +20.8% vs. fiscal 2021
Slide 25: Momentum
"lh ~ Momentum bs ——————
Slide 26: Thank you
Thank you mat rs DCM" J \ SURPRISINGLY SIMPLE
Slide 27: Contact Information
Contact Information For more information, please visit www.datacm.com or reach out to: Investor, media and corporate development inquiries Richard Kellam James Lorimer President & CEO Chief Financial Officer rkellam@datacm.com jlorimer@datacm.com +1 (416) 451-1117 +1 (905) 494-4101 DCM – TSX | DCMDF
Slide 28: Non-IFRS Measures
Non-lIFRS Measures DCM 7?
Slide 29: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 29
Slide 30: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 30